USD 10.18 Billion
Alternative Data Market Size, Share, Growth Analysis, By Data Type (Credit & Debit Card Transactions, Social & Sentiment Data), By Industry (BFSI, IT & Telecommunication), By End-user Outlook (Hedge Fund Operators, Investment Institutions, Retail Companies, Other End-users), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2087 |
Region:
Global |
Published Date: January, 2025
Pages:
187
|Tables:
91
|Figures:
71
Alternative Data Market Insights
Global Alternative Data Market size was valued at USD 10.18 Billion in 2023 and is poised to grow from USD 14.79 Billion in 2025 to USD 292.59 Billion by 2032, growing at a CAGR of 45.23 % in the forecast period (2025-2032).
The key drivers attributed to alternative data market growth are related to the stunning rise in types of alternative information sources since the last decade. The majority of digital forensics currently used in practice, such as web scraping and financial transactions, are already well-established sources while the emerging sources such as mobile devices, social media platforms, satellites, sensors, IoT-enabled devices and more, are gaining mainstream acceptance. Thus, the companies are trying to harvest their offering by collecting data from all of these sources.
Increasing usage of hedge funds is projected to create lucrative growth opportunities for market during the forecast period. It has now been widely adopted, with over half of hedge fund managers using it in the pursuit of alpha generation and supporting the risk management processes. Compared to normal financial statements, which can be sourced from regular databases, alternative data is hard to use in strategic planning. It is usually unstructured, not stored in a particular way and collected at very high frequency. Hence, to utilize the heuristics rendered out of it, the investor has to procure resources varying from expert personnel to technologies like analytics platform, fluid data architecture, data science and testing tools. Though, AI tools in machine learning and NLP are also trending for analysis. Processing enabled by AI fosters information proliferation as well as extraction of latent patterns.
Market snapshot - (2025-2032)
Global Market Size
Largest Segment
Credit & Debit Card
Fastest Growth
Social & Sentiment Data
Growth Rate
45.23% CAGR
Global Alternative Data Market ($ Bn)
Country Share for North America Region (%)
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Alternative Data Market Segmental Analysis
The global alternative data market is segmented into data type, industry, end-user, and region. Based on data type, the market is segmented into credit & debit card transactions, mobile application usage, social & sentiment data. Based on industry, the market is segmented into automotive, BFSI, energy, industrial. Based on end-user, the market is segmented into hedge fund operators, investment institutions, retail companies. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Analysis by Data Type
According to alternative data market analysis, in 2023 credit and debit card transaction segment is dominating with largest alternative data market. This large portion is due to the high interest investors have in this type of data and because there are a lot of suppliers for credit card transaction data. Credit scoring data-enriched with alternative data such as gig economy income, history of paying rent on time, utility bill payment, etc. can empower lenders to make a decision about granting loans or not. The growing capabilities of the data providers will also aid in accelerating the largest growth rate seize by this segment across the forecasting timeline, as these offer features like sorting customer expenditure based on gender, age, seller, geography and beyond. Now the companies are co-relating transaction data with other type of data to find hidden insights on consumer spend patterns, helping investors to invest in potentially profitable businesses.
As per alternative data market forecast, social and sentiment data segment is expected to witness the fastest growth. This growth is driven by the increasing demand for retail use of smartphones. It is used by retail companies to observe the usage behavior towards their e-commerce application. In addition, the retailers are using sentiment data on social media sites to understand user interests from different groups and regions. Also appealing is the geolocation (foot traffic) from satellite images to understand how many customer visit stores at a particular time and days, thus helping shape operational strategies for operating the stores. These sources are not as accurate as transaction data, but companies are finding ways to make connections and come up with insights.
Analysis by Industry
BFSI has emerged as an industry leader in implementing alternative data to secure a competitive edge, enhance decision-making capabilities, and mitigate exposure to risk in the alternative data industry. BFSI segment of alternative data provides a range of applications, including credit scores, and fraud mitigation as well as market intelligence and investment top choices. Moreover, the unstructured nature of a lot of alternative data is precisely why risk assessment/management in BFSI has emerged as one of the primary drivers for its usage/adoption. As a result, such factors are responsible for the growth of this segment which in turn propels the market growth over the forecast period.
According to alternative data market forecast, in 2023, the IT & telecommunications segment was witnessing the fastest growth in the market. For telecom companies, low bandwidth, dropped calls and poor network are burning problems. As a result, operators are increasingly utilizing alternative data for equipment monitoring, capacity planning and preventive maintenance to optimize their services. In addition to these, companies are utilizing demographic data, social and sentiment analysis data, and browsing behavior data for targeted ads as well as regional marketing strategies. These factors are increasing the growth of the segment, leading to the expansion of alternative data market share.
Global Alternative Data Market Analysis by Data Type
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Alternative Data Market Regional Insights
North America is dominating the market due to increasing adoption of alternative data, resulting in the expansion of alternative data market size. The sizeable market share of the region is attributed to a number of market players such as Advan, Eagle Alpha, M Science and UBS Evidence Lab. This factor along with the early adoption of alternative data from range of industry verticals makes this nation most prominent holder in market. Today, over 70% of American asset managers want to include alternative data in their investment strategy. Business alliances and purchases from Nasdaq and S&P Global Platts will also help spur the growth of the regional market. These are raising it above otherwise competitive regions.
Increasing demand for data-driven research utilization among the investors has propelled the market in Asia Pacific region to become one of the fastest growing regional markets. Regional market is expected to offer substantially higher growth opportunities for the companies from emerging economies which include India, Singapore, Thailand and China. The growth of alternative data use cases in the BFSI, retail, automotive and telecommunications industries is also a reason for this. Alternative data to be used for investment and risk assessment by companies in developing markets, such as China and India, is expected to continue driving the regional market expansion.
Global Alternative Data Market By Geography
- Largest
- Fastest
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Alternative Data Market Dynamics
Drivers
- Growing Application of Alternate Data in Hedge Funds
Hedge funds provide additional demand and are expected to further accelerate market growth. Over half of hedge fund managers use it now, as they create outperformance and enhance risk management processes for a competitive edge. Alternative data accessed by hedge fund managers consists of data mined from social networks, e-commerce sites, public records, traffic on the web, mobile devices, sensors and satellites.
- High Volume Data Collection
With the changing regulatory environment that governs acquiring data, using data and sharing data, sourcing of data has been evolving ever since. Possibly the most obvious consumer proposition behind growing demand is the immense allure of data as a tool for predicting sales and also providing economic indicators that might foreshadow future buying intentions. his has spurred demand to use alternative data analysis tools on credit card transaction data.
Restraints
- Data Interpretation Issues
As we continue to undergo exponential growth in the generation of high-volume heterogeneous data, we continue to compound heterogeneity and its associated complexity while the process of accurate high-dimensional evaluation becomes ever more challenging. However, the nature of data generated during life science research is highly complex and difficult to manage; this complexity in turn expected to restrain the growth of the market.
- Low Degree of Data Accuracy
Interpretation of the data might be an obstacle for enterprises. With so many sources out there, it can be difficult to tell distinguish between reliable and good sources from bad unreliable ones. In case the incorrect data is collected from unreliable sources it can lead to wrong analysis thus impacting strategics adopted by the company in tern impacting the company substantially in the long run.
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Alternative Data Market Competitive Landscape
The alternative data industry is expected to witness a high growth phase in the near future. The market is quite fragmented, with many small-scale companies and start-ups. In order to gain competitive advantage, the key market players are also focusing on achieving optimum accuracy in data sets and developing premium quality and high-value datasets through Research and Development (R&D) Studies by constantly innovating themselves. With respect to many of the types of data considered, such as sentimental data, footprint data, transaction data and others, we expect the threat of substitutes of alternative data would be low since a direct alternative in the market does not exist. Also, the web scraped and public domain dataset/verbiage like Annual reports, financials, etc., are turning out to be obsolete for better decision making as strategy managers start venturing toward alternative data to frame business strategies.
Top Player’s Company Profile
- 1010Data
- Advan
- Dataminr
- Earnest Research
- M Science
- Preqin
- RavenPack
- Thinknum Alternative Data
- UBS Evidence Lab
- YipitData
- Beijing Tendcloud Tianxia Technology
- Convergence
- Geotab Inc.
- Intrinio
- Japan Exchange Group
Recent Developments
- In April 2023, New data fields of employee lifecycle stages were launched by Thinknum Alternative Data to its employee sentiment datasets enabling people analytics teams and investors to use this as a proxy for an 'employee NPS' while also helping top-rated employers set interviews through employee referrals.
- In September 2022, Thinknum Alternative Data unveiled plans to merge data Similarweb, SensorTower, Thinknum, Caplight and Pathmatics with Lagoon a robust infrastructure offering an alternative data source for investment research, due diligence, deal sourcing/origination and post-acquisition strategies in private markets.
- In May 2022, M Science LLC launched a consumer spending trends platform with daily, weekly, monthly and semi-annual visibility into consumer behavior and competitive benchmarking. This enabled real-time analysis of what was happening with consumer spending trends and an unmatched performance breakdown for Australian brands through a consumer spending platform.
Alternative Data Key Market Trends
- Implementation of Technology to Handle Large Volume Data: Bioinformatics tools allow the identification of new biomarkers based on changes in human physiology highlighted by Alternative Data results. Biomarkers have utility for in-vitro diagnostics, environmental toxicology screening and drug discovery and development platform methods. Over the past decade, the omics revolution has amplified Alternative Data usages in biomedical fields.
- Data Driven Financial Investment: Big Data analytics, artificial intelligence (AI) and machine learning (ML) are changing the way data is gathered, processed and manipulated. Big data technologies can deal with massive datasets as well as complex datasets and provide a more granular view on market dynamics. The continuous technological advancement will create a wider space for what can be accomplished with alternative data.
Alternative Data Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, alternative data industry is proving to be a game-changer in the realm of financial analytics and market insights; one that provides a holistic view of the market dynamics far greater than what traditional sources can provide. Financial related transactions are the major application area of alternative data which is also Credit and Debit Card Transactions. By analysing the patterns and trends in these transactions, businesses and investors can glean invaluable insights into consumer behaviour: spending habits, as well as greater economic activity. On top of that, by examining the data behind email receipts, companies have access to a true insight into customer buying habits and preferences.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 10.18 Billion |
| Market size value in 2032 | USD 292.59 Billion |
| Growth Rate | 45.23% |
| Base year | 2024 |
| Forecast period | (2025-2032) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Alternative Data Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Alternative Data Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Alternative Data Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Alternative Data Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Alternative Data Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Alternative Data Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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